From January next year, the personal credit rating criteria of financial consumers will change from grade to score.
The credit rating, which was applied by dividing from 1st to 10th grade, is subdivided into 1 to 1,000 points.
The Financial Services Commission announced that starting January 1 of next year, the credit rating system will be completely converted to a credit score system in all financial sectors.
The personal credit rating company does not calculate the credit rating, but only calculates the score of the personal credit rating and provides it to financial consumers and financial companies.
In particular, financial consumers with low creditworthiness have better access to finance.
The'threshold effect' of the existing credit rating system is expected to disappear.
For example, there is no significant difference in terms of credit scores for those with a high rank 7 or a low rank 6, but they often suffered excessive penalties in loan examinations due to their different ratings.
Credit rating standards under laws and regulations, such as credit card issuance and support for low-income financial products such as Sunshine Loan, and preferential credit limit for mid-interest loans, will also be changed to the personal credit score.
In the case of card issuance criteria, it will be changed from 6 or higher in the existing grade to 680 or higher for Nice Rating Information or 576 or higher for Korea Credit View next year.